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Electricity Discos blame FG’s failure to pay N100bn subsidy, other promises for travails
Nigeria’s Electricity Distribution Companies (DisCos) have attacked the Federal Government over what they described as ‘renationalisation’ of electricity firms.
They insisted that government, via the Bureau of Public Enterprise (BPE) and Nigerian Electricity Regulatory Commission (NERC), allegedly has a hand in the failure of the power sector by not “meeting extant guidelines and regulations.”
The Association of Nigerian Electricity Distributors (ANED), an umbrella body of the DisCos, in a statement, claimed that government failed to fulfil a N100 billion subsidy and other privatisation promises made since 2013.
At least, five firms – Abuja DisCo, Benin DisCo, Ibadan DisCo, Kaduna and Kano DisCos – have fallen into the hands of banks they took credit from after being unable to break even eight years after licensing.
The prevailing situation, which comes few days after NERC announced a contract-based electricity market, stakeholders said the development might worsen the industry’s woes, pointing to an alleged breach by BPE and NERC.
Executive Director, Research and Advocacy, Sunday Oduntan, said the utility companies are deeply concerned about the “restructuring” of the five electricity distribution firms, adding that the move “is inconsistent with all the guidelines and processes necessary to comply with the framework of privatisation agreements and the rule of law.”
According to him, resultant outcome of the move has been an expropriation or backdoor renationalisation of the DisCos by the Federal Government.
He went on: “Such renationalisation or expropriation must be viewed through a historical context as necessary for a proper understanding of the performance challenges that the DisCos have been faced with since privatisation.
“Fundamentally, the basis of privatisation was flawed from the beginning, due to conditions that were not met by the Federal Government, while expecting the DisCos to meet their performance obligations. Not only were the investors short-changed because of insufficient and unreliable data that was provided by BPE to them during the privatisation process, but the government also committed to and failed to deliver on DisCos’ debt-free financial books, payment of Ministries, Department and Agencies (MDA) electricity debts and N100 billion subsidy.”
While it said the DisCos take responsibility for some issues, ANED stated that the government also contributed to the challenges. It said the government holds 40% stakes in the DisCos, has representatives on the boards that take operational decisions but the DisCos are blamed for the misalignment in the power sector.
“Expropriation or renationalisation, by itself, of the DisCos will not change the current bleak situation or outlook of the Nigerian Electricity Supply Industry (NESI),” ANED noted.
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Sports Minister Signs Three Groundbreaking MoUs in Quest to Bolster Sports Development and Funding
..Says the Renewed Hope Agenda offers best opportunity for sports development
Joel Ajayi
Driven by his undiluted resolve to boost sports development in line with the Renewed Hope mandate of President Bola Ahmed Tinubu, the Honourable Minister of Sports Development, Senator John Owan Enoh signed three Memoranda of Understanding, on Friday in Lagos.
Senator Enoh announced that a Memorandum of Understanding (MOU) was signed with GTI Asset Management and Trust Limited to relaunch the Challenge Cup as the President Federation Cup in collaboration with the NFF to reignite interest amongst fans and elevate it to global standards. The renamed competition will involve grassroots teams, create employment for approximately 500,000 Nigerians, engage over 100,000,000 football enthusiasts, and showcase our country’s greatness globally. The President Federation Cup will become President Bola Ahmed Tinubu’s legacy championing Nigerian football.
The Minister stated thus “our groundbreaking agreements with key private sector players like GTI are indications of our resolve to revolutionize sports in Nigeria, leveraging innovation, technology, and human expertise.” He thanked Mrs Tinuke Watti, the Permanent Secretary of the Sports Ministry, Alhaji Ibrahim Gusau, President of the NFF, and Mr Abubakar Lawal and all members of the GTI team for their invaluable contributions.
For the second deal, the Federal Ministry of Sports signed a landmark agreement with top lottery company Yanga Games to raise the revenue profile of the Ministry and ensure a new deal for the welfare of athletes. The Sports Minister stated that “we are partnering with YangaGames to bring maximum benefits to the athletes and all critical stakeholders.We shall give institutional encouragement and support to the Management of Yanga Games to succeed in this onerous task of rebuilding our sports sub sector.”
Chairman/CEO of Yanga Games Mr Derrick David Kentebe said” We are so super excited by this opportunity to work with the Ministry of Sports Development to change the narrative about Sports in the country. We see opportunities for marketing our athletes and sports generally.” He also added that “we shall raise about 34 Billion in the next four years to assist athletes and improve sports in the country. We shall help to develop grassroot sports and sustain youth involvement through raffle draws, fundraisers and other avenues.” Senator Enoh said that he strongly believes President Bola Ahmed Tinubu’s Renewed Hope Agenda offers the best opportunity to promote systemic development in Nigerian sports and the collaboration aims to make sports more attractive to private investors so that it can receive meaningful investments from the private sector.
For the third agreement, the Federal Ministry of Sports Development joined forces with EFFA Management for specific purposes that will enhance various aspects of the sports ministry’s strategic six-point policy framework. When Senator Enoh took office, the Ministry developed a six-point agenda named W.A.I.F.A.R. This agenda includes the welfare of our athletes, activation of sports as an industry, infrastructure development, funding for sports development, activation of grassroots sports, and the reorganization of sports federations to ensure effective delivery. Senator Enoh said that the sports sector is currently experiencing a surge in efforts to improve its performance and the Ministry is fully prepared to establish partnerships that will facilitate this much-needed transformation.
With these three groundbreaking agreements, Nigerian sports is at the cusp of phenomenal development that will further propel athletes and federations towards greater success. Senator Enoh thanked all parties for keying into the vision of the Ministry and stated that the Ministry will continually pursue causes that will lead to strategic positioning for greater development.
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